Abstract:
The general objective of this study is to find out the role of financial statement analysis under decision making of manufacturing companies in Rwanda and this study was achieved the followings specific objectives: to determine the role of analysis of statement of financial position in decision making of Bralirwa Plc, to assess the role of analysis of income statement in decision making of Bralirwa Plc and to establish the role of analysis of cash flow statement in decision making of Bralirwa Plc. This study was designed as a case study of Bralirwa Plc using the survey method; a case study was described as analysis of financial statement analysis under decision making of manufacturing companies, assuming that the researcher can acquire knowledge regarding the subject under review from in-depth exploration of a single case. It was a qualitative analysis that involves careful observation of a situation. The researcher used questionnaires to collect data, As far as this study was concerned, the population was comprised of employees of Bralirwa Plc targeting 244 employees. Thus, a sample size of 151 respondents was considered as representative of the total population. I used primary and secondary data to get all information needed in this study, the statistical method was offered the opportunity to analyze and quantify the results of research collected by using quantitative, qualitative methods and SPSS version 20. The researcher concluded that various financial statements are prepared by Bralirwa Plc and they include balance sheet, income statement and cash flow statements. The financial statements prepared are analyzed in order to find the various ways through decision making enhanced. Hence meaning that financial statement analysis contributes to the decision making of Bralirwa Plc. The researcher concluded that the various factors necessary for the financial performance of Bralirwa Plc are availability of capital, market availability, committed employees, and forecasting and a Bralirwa Plc reputation and that Bralirwa Plc performs well due to financial statement analysis carried out. The researcher also concluded that forecasting future financial statements analysis (23%), to assess financial performance (27%), to make financial statements analysis (14%), to compare variations in financial performance (9%) and to compare with expectations of financial performance (27%). Decision making of Bralirwa Plc is described as good because of the benefits that accrue from financial statement analysis. The leaders of Bralirwa Plc, who have manufacturing activities into their attribution and responsibilities, are suggested: to allow manufacturing market actors to learn from each other’s experiences, building on expertise and knowledge; to contribute in transparency and accountability of manufacturing markets and allows for lessons to be shared more easily; to reveal manufacturing markets mistakes and offers manufacturing sales paths for learning and improvements; to provides a way to assess the crucial link between implementers and beneficiaries on the ground and marketing decision-makers; to act according to the legal framework at the organization level of financial analysis strategies.